The following transactions and adjusting entries were completed by a paper-packaging company called Gravure Graphics International. The company uses straight-line depreciation for trucks and other vehicles, double-declining-balance depreciation for buildings, and straight-line amortization for patents. January 2, 2020 Paid $98,000 cash to purchase storage shed components. January 3, 2020 Paid $3,000 cash to have the storage shed erected. The storage shed has an estimated life of 10 years. and a residual value of $6,000. April 1, 2020 May 13, 2020 July 1, 2020 Paid $44,000 cash to purchase a pickup truck for use in the business. The truck has an estimated useful life of five years and a residual value of $4,000. This vehicle is to be recorded in the Truck account. Paid $800 cash for minor repairs to the pickup truck's upholstery. Paid $17,000 cash to purchase patent rights on a new paper bag manufacturing process. The patent is estimated to have a remaining useful life of five years. December 31, 2020 Recorded depreciation and amortization on the pickup truck, storage shed, and patent. June 30, 2021 Sold the pickup truck for $37,000 cash. (Record the depreciation on the truck prior to recording its disposal.) December 31, 2021 Recorded depreciation on the storage shed. Recorded the patent amortization. After recording the patent amortization, determined that the patent was impaired and wrote off its remaining book value (i.e., wrote down the book value to zero). Required: Prepare the journal entries required on each of the above dates. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Do not round intermediate calculations.) a
The following transactions and adjusting entries were completed by a paper-packaging company called Gravure Graphics International. The company uses straight-line depreciation for trucks and other vehicles, double-declining-balance depreciation for buildings, and straight-line amortization for patents. January 2, 2020 Paid $98,000 cash to purchase storage shed components. January 3, 2020 Paid $3,000 cash to have the storage shed erected. The storage shed has an estimated life of 10 years. and a residual value of $6,000. April 1, 2020 May 13, 2020 July 1, 2020 Paid $44,000 cash to purchase a pickup truck for use in the business. The truck has an estimated useful life of five years and a residual value of $4,000. This vehicle is to be recorded in the Truck account. Paid $800 cash for minor repairs to the pickup truck's upholstery. Paid $17,000 cash to purchase patent rights on a new paper bag manufacturing process. The patent is estimated to have a remaining useful life of five years. December 31, 2020 Recorded depreciation and amortization on the pickup truck, storage shed, and patent. June 30, 2021 Sold the pickup truck for $37,000 cash. (Record the depreciation on the truck prior to recording its disposal.) December 31, 2021 Recorded depreciation on the storage shed. Recorded the patent amortization. After recording the patent amortization, determined that the patent was impaired and wrote off its remaining book value (i.e., wrote down the book value to zero). Required: Prepare the journal entries required on each of the above dates. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Do not round intermediate calculations.) a
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
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![PA9-4 (Algo) Recording Transactions and Adjustments for Tangible and Intangible Assets [LO 9-1, LO 9-
2, LO 9-3, LO 9-4, LO 9-5, LO 9-6]
The following transactions and adjusting entries were completed by a paper-packaging company called Gravure Graphics
International. The company uses straight-line depreciation for trucks and other vehicles, double-declining-balance depreciation for
buildings, and straight-line amortization for patents.
January 2, 2020 Paid $98,000 cash to purchase storage shed components.
January 3, 2020 Paid $3,000 cash to have the storage shed erected. The storage shed has an estimated life of 10 years
and a residual value of $6,000.
April 1, 2020
May 13, 2020
July 1, 2020
December 31, 2020
June 30, 2021
December 31, 2021
Paid $44,000 cash to purchase a pickup truck for use in the business. The truck has an estimated
useful life of five years and a residual value of $4,000. This vehicle is to be recorded in the Truck
account.
Paid $800 cash for minor repairs to the pickup truck's upholstery.
Paid $17,000 cash to purchase patent rights on a new paper bag manufacturing process. The patent is
estimated to have a remaining useful life of five years.
Recorded depreciation and amortization on the pickup truck, storage shed, and patent.
Required:
Prepare the journal entries required on each of the above dates. (If no entry is required for a transaction/event, select "No
Journal Entry Required" in the first account field. Do not round intermediate calculations.)
<
Sold the pickup truck for $37,000 cash. (Record the depreciation on the truck prior to recording its
disposal.)
Recorded depreciation on the storage shed. Recorded the patent amortization. After recording the
patent amortization, determined that the patent was impaired and wrote off its remaining book value
(i.e., wrote down the book value to zero).
View transaction list
1
Journal entry worksheet
2
3 4
5
6
7
8
Record the purchase of storage shed components for $98.000.
12
Prey
>
10 of 11
H](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F11a64bba-74c0-4fd7-b16b-3d8fff0a6ac2%2F8c8110a1-aaef-4dd2-bf17-a3a7e246511c%2Fx0aafwh_processed.jpeg&w=3840&q=75)
Transcribed Image Text:PA9-4 (Algo) Recording Transactions and Adjustments for Tangible and Intangible Assets [LO 9-1, LO 9-
2, LO 9-3, LO 9-4, LO 9-5, LO 9-6]
The following transactions and adjusting entries were completed by a paper-packaging company called Gravure Graphics
International. The company uses straight-line depreciation for trucks and other vehicles, double-declining-balance depreciation for
buildings, and straight-line amortization for patents.
January 2, 2020 Paid $98,000 cash to purchase storage shed components.
January 3, 2020 Paid $3,000 cash to have the storage shed erected. The storage shed has an estimated life of 10 years
and a residual value of $6,000.
April 1, 2020
May 13, 2020
July 1, 2020
December 31, 2020
June 30, 2021
December 31, 2021
Paid $44,000 cash to purchase a pickup truck for use in the business. The truck has an estimated
useful life of five years and a residual value of $4,000. This vehicle is to be recorded in the Truck
account.
Paid $800 cash for minor repairs to the pickup truck's upholstery.
Paid $17,000 cash to purchase patent rights on a new paper bag manufacturing process. The patent is
estimated to have a remaining useful life of five years.
Recorded depreciation and amortization on the pickup truck, storage shed, and patent.
Required:
Prepare the journal entries required on each of the above dates. (If no entry is required for a transaction/event, select "No
Journal Entry Required" in the first account field. Do not round intermediate calculations.)
<
Sold the pickup truck for $37,000 cash. (Record the depreciation on the truck prior to recording its
disposal.)
Recorded depreciation on the storage shed. Recorded the patent amortization. After recording the
patent amortization, determined that the patent was impaired and wrote off its remaining book value
(i.e., wrote down the book value to zero).
View transaction list
1
Journal entry worksheet
2
3 4
5
6
7
8
Record the purchase of storage shed components for $98.000.
12
Prey
>
10 of 11
H
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